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Migrant tenants 'easy prey' for landlords

Migrant tenants 'easy prey' for landlords

A migrant worker being charged $250 a week to couch-surf in Queenstown is an example of ongoing abuse in the town, a social leader says.
Queenstown Citizens Advice Bureau manager Tracy Pool said some houses packed in migrant workers in conditions that risked safety and hygiene, including people on couches and in bunk beds, with few bathrooms.
The revelation comes the day after the Tenancy Tribunal slapped Queenstown landlord James Truong with a $113,723 fine for housing 22 tenants — mostly migrant workers — in an unconsented, unsafe five-bedroom boarding house.
The tenants were living in the house, two garages and a shed. The buildings were missing smoke alarms, did not comply with Healthy Homes Standards and the electricity system was overloaded.
Mr Truong had been given warnings by the Queenstown Lakes District Council and the government's Tenancy Compliance and Investigations Team (TCIT) since 2020.
TCIT national manager Brett Wilson said Mr Truong had known the rules, but ignored them and the tenants were in a "vulnerable situation ... with little knowledge of their rights".
Mr Truong was also required to pay back 40% of rent paid by the tenants while the building was being operated as an unconsented boarding house.
Ms Pool said that migrant workers on low wages who wanted a room to themselves were being charged $400 a week plus bills, making it hard for them to survive.
"If you're paying under $350 it is considered cheap."
She said migrant workers were often from the Philippines or India, and were easy prey for greedy head tenants or landlords because the workers wanted to live as cheaply as possible so they could send as much money as possible to their families at home.
"It makes it so much harder because it does make them so much more vulnerable to people who take advantage of them," she said.
Ms Pool said she knew of a case where a company had decided to stop taking responsibility for staff accommodation in a rented house and had transferred the head tenancy to one of its managers, who had then hiked rents and brought in bunk beds.
"He took advantage of the shortage of accommodation going into the winter season, to make as much money as he could."
Ms Pool said it was difficult to know the scale of the problem.
"It's really difficult to say, but there is always pressure every winter season and that's when things can go haywire."
Her message to landlords and head tenants was "don't do it. It's wrong and immoral to take advantage of people like this".
mary.williams@odt.co.nz
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Migrant tenants 'easy prey' for landlords
Migrant tenants 'easy prey' for landlords

Otago Daily Times

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Migrant tenants 'easy prey' for landlords

A migrant worker being charged $250 a week to couch-surf in Queenstown is an example of ongoing abuse in the town, a social leader says. Queenstown Citizens Advice Bureau manager Tracy Pool said some houses packed in migrant workers in conditions that risked safety and hygiene, including people on couches and in bunk beds, with few bathrooms. The revelation comes the day after the Tenancy Tribunal slapped Queenstown landlord James Truong with a $113,723 fine for housing 22 tenants — mostly migrant workers — in an unconsented, unsafe five-bedroom boarding house. The tenants were living in the house, two garages and a shed. The buildings were missing smoke alarms, did not comply with Healthy Homes Standards and the electricity system was overloaded. Mr Truong had been given warnings by the Queenstown Lakes District Council and the government's Tenancy Compliance and Investigations Team (TCIT) since 2020. TCIT national manager Brett Wilson said Mr Truong had known the rules, but ignored them and the tenants were in a "vulnerable situation ... with little knowledge of their rights". Mr Truong was also required to pay back 40% of rent paid by the tenants while the building was being operated as an unconsented boarding house. Ms Pool said that migrant workers on low wages who wanted a room to themselves were being charged $400 a week plus bills, making it hard for them to survive. "If you're paying under $350 it is considered cheap." She said migrant workers were often from the Philippines or India, and were easy prey for greedy head tenants or landlords because the workers wanted to live as cheaply as possible so they could send as much money as possible to their families at home. "It makes it so much harder because it does make them so much more vulnerable to people who take advantage of them," she said. Ms Pool said she knew of a case where a company had decided to stop taking responsibility for staff accommodation in a rented house and had transferred the head tenancy to one of its managers, who had then hiked rents and brought in bunk beds. "He took advantage of the shortage of accommodation going into the winter season, to make as much money as he could." Ms Pool said it was difficult to know the scale of the problem. "It's really difficult to say, but there is always pressure every winter season and that's when things can go haywire." Her message to landlords and head tenants was "don't do it. It's wrong and immoral to take advantage of people like this".

22 tenants in five-bedroom home: Queenstown landlord fined $113k
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time2 days ago

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22 tenants in five-bedroom home: Queenstown landlord fined $113k

A Queenstown landlord chose to ignore tenancy rules by housing 22 mainly migrant workers in a five-bedroom house, converted garages and a shed, the Ministry of Business and Innovation says. James Truong has been ordered to pay $113,723.56 for multiple breaches of the Residential Tenancies Act as well as refund 40 percent of rent paid by the tenants lodged in an unlawful boarding house. The ministry's tenancy compliance and investigations team found the house had failed to meet healthy homes standards and Truong had interfered with the tenant's power supply as well as posting invalid rent increases and harassing a tenant The team had advised Truong to stop using the building as a boarding house in 2020 but a complaint in 2023 revealed 11 people living in the five-bedroom house, and a further 11 people in two converted garages and a shed. TCIT National Manager Brett Wilson said Truong was an experienced landlord who would have been well aware of his obligations and responsibilities under the Act. "Mr Truong knew the rules but chose to ignore them. There was significant non-compliance in this case with multiple breaches of the Act ranging from failure to comply with healthy homes and insulation statement requirements to interfering with the supply of electricity. "The level of damages awarded reflects the seriousness of the non-compliance in this case and the number of people affected," Wilson said. Wilson said the tenants were in a vulnerable situation given most of them were new to the country. "Many of the tenants were overseas workers on working holiday visas who had little knowledge of their rights as tenants in New Zealand. They were also working in a location with a shortage of rental accommodation which made them vulnerable to a landlord who was knowingly operating outside of the Residential Tenancies Act." Adjudicator R Woodhouse rejected Truong's claims that the house was safe and compliant and that he was simply helping his tenants out. Woodhouse noted the commercial levels of rent charged at the premises were not consistent with that approach, and when attention from authorities came on to the premises, the tenancies were abruptly terminated. Truong was also issued with a three-year restraining order from committing any further unlawful acts related to operating a boarding house. RNZ has contacted Truong for comment.

Queenstown landlord fined $113,000 for unlawful boarding house
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Queenstown landlord fined $113,000 for unlawful boarding house

A Queenstown landlord has been fined more than $113,000 for illegally using his property as a boarding house for 22 tenants — migrant workers. Landlord James Truong must pay this amount to the Ministry of Business, Innovation and Employment (MBIE) on behalf of the tenants, who were primarily employed in Queenstown's hospitality industry. In 2020, the Queenstown Lakes District Council and MBIE's Tenancy Compliance and Investigations Team warned Truong to stop using the property as a boarding house or apply for permission to formally change its use. He was clearly informed the rules of operating a boarding house and communicated his decision to return the property to use as a regular home. However, after receiving a complaint in 2023, the team investigated the property again and found 11 people living in the five-bedroom house, and a further 11 people in two converted garages and a shed. ADVERTISEMENT Garage area where five tenants were living. (Source: TCIT Queenstown) The investigations team took the case to the Tenancy Tribunal, which found Truong committed "multiple breaches of the Act" including operating an unconsented boarding house, failing to meet healthy homes standards, interfering with tenants' electricity supply, invalid rent increases and harassment of a tenant. The property had several problems, such as electricity overloading, missing smoke alarms and non-compliance with healthy homes standards. Smoke alarm not installed with attached bracket on dresser. (Source: TCIT Queenstown) Truong claimed the premises were safe and compliant, and he was simply helping his tenants out, but the tribunal declared the premises to be unlawful residential premises, as he did not have the necessary consent to operate a boarding house with six or more tenants. Investigations team national manager Brett Wilson said Truong was "an experienced landlord who would have been well aware of his obligations and responsibilities under the Act, including through previous interactions with him". "Mr Truong knew the rules but chose to ignore them. There was significant non-compliance in this case with multiple breaches of the Act ranging from failure to comply with healthy homes and insulation statement requirements to interfering with the supply of electricity. The level of damages awarded reflects the seriousness of the non-compliance in this case and the number of people affected," he said. ADVERTISEMENT Another smoke alarm not installed sitting on fridge and no brackets on the ceiling to show where it should have been installed. (Source: TCIT Queenstown) Wilson said the tenants were in a vulnerable situation, given most of them were new to the country and there was a shortage of rental properties in the Queenstown area. "Many of the tenants were overseas workers on working holiday visas who had little knowledge of their rights as tenants in New Zealand. They were also working in a location with a shortage of rental accommodation which made them vulnerable to a landlord who was knowingly operating outside of the Residential Tenancies Act." The adjudicator, R Woodhouse, said the investigation had been conducted in a fulsome and careful manner by MBIE, saying: "The witness evidence was consistent and credible". Gap between tenanted garages and main house. (Source: TCIT Queenstown) Woodhouse also did not accept that Truong was motivated by purely altruistic intentions, noting the commercial levels of rent charged at the premises were not consistent with that approach, and when attention from authorities came onto the premises, the tenancies were abruptly terminated. The Tribunal also criticised Truong for secretly recording private conversations between tenants and MBIE investigators, using security cameras installed throughout the property. ADVERTISEMENT Truong was ordered to pay $113,723.56 for breaches of the Residential Tenancies Act 1986, and to refund 40% of the rent paid while the property was operating as an unlawful boarding house. He was also issued with a three-year restraining order from committing any further unlawful acts related to operating a boarding house. If a landlord intentionally breaches a restraining order this is an offence tried in the District Court and under Section 109A of the Residential Tenancies Act they are liable on conviction to a fine not exceeding $3600.

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